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I had a bankruptcy (not a work out) discharged on 6/1/10 - One home was not removed by the bank until 9/11

I do not know my credit score. I have no lates or credit cards. I have 1 installment loan that I will pay off. Can I get a home loan with 40 to 50% down on a home under $300K. With a good interest rate my payment PITI would be 37% of my retirement income with no other debtsexcept a credit card or two (wifes) that is paid to zero every month. by mcfelf_554_468 from Las Vegas, Nevada. Nov 29th 2012 Reply


William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,553 contributions

Two things going on here.. The BK-7 not 13, the mandatory waiting period is 2 years.. But There's a home involved.. if the home was part of your BK, and was given back to the bank, but the deed did not come out of your name until 9/11 when it foreclosed, then guidelines mandate that you wait 3 years from the date the property was transferred out of your name before you can qualify for a new FHA loan.. VA only requires a 2 year waiting period, but you must have VA eligibility... these are the guidelines for FHA financing.. Conventional financing is an even longer waiting period... so there's really no conforming product you can use where you're slightly over a year after a foreclosure... But then there's hard money.. with 40% to 50%, there is a lender out there willing to lend you money... it will be an expensive loan, with tons of fees and the rate will be high, but there are lenders out there willing to finance you.. if you go this route, you can always refinance once you have met the mandatory waiting periods.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Nov 29th 2012
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Travis Torcoletti (travis.torcoletti)
#0 ranked lender in South Carolina - 372 contributions

Difficult to say for certain with the info provided here but putting 40%-50% down certainly provides you with some options, probably none in the conventional realm though. Typically after a BK involving a foreclosed home a person would be waiting 2-3 years to get into a new mortgage but your down payment ability gives you some choices. Get with a local mortgage broker, do not go to the big banks or any of these internet only or all 50 state tweekers, and sit down with them and explain your situation to see if they can help you.

Nov 29th 2012
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Bert Carpenter (BertCarpenter)
#38 ranked lender in Arizona - 1,819 contributions

To be eligible for a new FHA mortgage, you will have to wait until the later of two years plus one day for a Chapter 7 bankruptcy and three years plus one day for a foreclosure. It does not matter that the home was included in the Bankruptcy. While you wait, you must take steps to restore your credit. After a bankruptcy, most items reported on the credit report are wrong. Plus, in order to qualify for a new mortgage you will have to have re-established credit. Most lenders require at least three accounts open and active for at least one year and paid as agreed. Use this time wisely and you will be able to close escrow soon. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

Nov 29th 2012
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Douglas Caire, Jr (dpcaire)
#21 ranked lender in Louisiana - 4 contributions

You should have passed the 2 year threshold for bankruptcy limitations for most home loans if you reaffirmed your home loan is the bankruptcy. If your home loan was included in the bankruptcy and discharged then you most likely have to wait 3 years after bankruptcy. If you are over the age of 62 and you have offer a funds for a large down payment you should consider a reverse mortgage for the purchase of your new home. Your credit standing is not an issue on a reverse mortgage and you will be able to benefit from more of your retirement funds available each month because you will not have to make a monthly payment.For information on a Reverse Mortgage you can go to "http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/hecm/hecmabou" for more information from HUD or Contact a Mortgage Broker who offers Reverse Mortgages in your state.Good Luck, Doug Caire - Oak Tree Mortgage Company, New Orleans, LA 504-684-8522

Nov 29th 2012
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Al McGhee (Al.McGhee)
#541 ranked lender in California - 18 contributions

William is correct in his analysis.

Nov 29th 2012
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John Le Francois (john.lefrancois)
#2 ranked lender in Nevada - 14 contributions

Based on the information that you provided here are your options.FHA Loans requires 2 years after chapter 7 but if there was a house included in the BK it will require 3 years and this is not from the discharge date but when the deed was taken out of your name.VA loans can be done if you are a veteran and after 2 years from BK discharge date, but this too will require the 2 year when the deed was taken out of your name.Conventional loan require 4 years after BK and they treat the house as a foreclosure which requires 7 years.Hard Money loans requires 35% down interest only for 3 to 5 years and 12% to 13% rates.I noticed that you stated that you are receiving a pension so there is one other option that has not been discussed here. HECM or Reverse Mortgage is available after 1 day out of BK or foreclosure if the foreclosure was not a FHA loan or VA loan. If you and spouse are 62 years or older and did not have a government backed loan you would be able to get a Reverse Mortgage Purchase home loan.

Nov 29th 2012
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Peter Botros (PeterBotros)
#70 ranked lender in New York - 895 contributions

William's answer is correct

Nov 29th 2012
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